More companies are failing to hand over the pension contributions of their workers with more than R8bn owed to retirement fund administrators.
The Financial Sector Conduct Authority FSCA said the number of defaulting companies has tripled since 2023, from 5,430 to 16,556 in February this year. The number of owed fund administrators escalated from 23 in 2023 to 75 by this year, said the FSCA.
Total arrears are estimated to be R8.33bn, affecting about 590,000 retirement fund members. This represents an increase of R1.04bn 14.2 from the R7.29bn reported as at March 31 2025. Notably, late payment interest accounts for 43.5 of total arrears, said the regulator.
